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74.5%

of Chennai Port's ₹2,383 crore purchase of Kamarajar was borrowed

Kamarajar Port’s IPO helps repay the loan that bought it

Companies No. 11 15 September 2026 · 1 min read

Kamarajar Port is lining up a ₹1,200 crore IPO, set to make it India's only listed state-backed port. So the government is finally selling a port? Well, it already sold this one in 2020, to itself.

The Centre sold its 66.67% to Chennai Port for ₹2,383 crore. Short of cash, Chennai Port borrowed ₹1,775 crore of it, or 74.5%, at 8%. CAG said the deal "defeated the very spirit of disinvestment".

Since then, Kamarajar has been paying for its own purchase. It sent Chennai Port ₹390 crore of dividends in FY25, 72% of its ₹539 crore profit, and CARE says those dividends help service the parent's debt.

The IPO is a pure offer for sale, so Kamarajar gets nothing. Chennai Port does, reportedly to clear the ₹843 crore still owed to SBI on that loan, with a ₹2,582 crore pension deficit behind it.

Investors get a port with an 83% operating margin and coal as half its cargo, and their money goes towards the loan that bought it the first time!

Kamarajar Port’s IPO money goes back to the loan that bought it

In 2020 the port moved from one government owner to another on borrowed money. Kamarajar’s dividends have helped service that debt since, and the IPO sells the parent’s shares.

Timeline: in 2020 Chennai Port borrowed ₹1,775 crore of the ₹2,383 crore it paid the Centre for Kamarajar Port; Kamarajar then paid it ₹240 crore and ₹390 crore of dividends; the ~₹1,200 crore IPO sells Chennai Port's shares, reportedly to repay ₹843 crore still owed to SBI.

CAG; Kamarajar Port; CARE; press reports · 2020 to Sep 2026

Kamarajar sent its parent 72% of its FY25 profit as dividends

Dividends paid in cash to Chennai Port against Kamarajar’s profit after tax. CARE says the dividends help Chennai Port service its debt.

Kamarajar Port paid Chennai Port ₹390 crore of dividends in FY25, 72% of its ₹539 crore profit, up from ₹240 crore, 48% of profit, in FY24.

₹ CRORE

Profit after taxDividends paid to Chennai Port

72% of profit, up from 48%

Dividends are cash paid in the year, from the cash flow statement, so FY25 includes the previous year’s final dividend.

Kamarajar Port Annual Report 2024-25; CARE Ratings · FY24 and FY25

Sources